China's BYD launches share sale to raise up to $5.2 billion, term sheet shows

By Scott Murdoch

(Reuters) -Chinese electric vehicle maker BYD has launched a sale of its Hong Kong shares to raise up to $5.2 billion via an accelerated book-building, according to a deal term sheet seen by Reuters on Monday.

The company has set a price range of HK$333-HK$345 per share for the offering, representing an up to 8.4% discount compared to the stock's market closing price of HK$363.60 on Monday.

The offering is expected to be priced on Monday, the term sheet said.

BYD did not immediately respond to a Reuters' request for comment.

The company plans to use the proceeds to invest in research and development, expand overseas businesses, supplement working capital, and for general purposes.

The deal adds to a sharp pickup this year in share offering momentum in Hong Kong, the preferred destination for Chinese companies looking to raise offshore capital, as investors bet on a possible recovery in China's economic growth.

Shares of China's largest bubble tea and drinks chain, Mixue Group, jumped more than 47% in their debut on the Hong Kong Stock Exchange on Monday, with new listings in the city recording their strongest start to a year since 2021.

The stellar start reinforces hopes for a strong year in new equity issuances by Chinese companies in Hong Kong, as Beijing steps up support for its private enterprises to revive a slowing economy amid heightened geopolitical tensions.

The fundraising comes amid a hectic pace of hiring and expanding to other markets for BYD.

BYD plans to hire 20,000 employees in Zhengzhou in the first quarter as it boosts production capacity, government-run Henan Daily reported last month.

The company also aims to complete its $1 billion plant in Indonesia at the end of 2025, the head of its local unit said in January.

BYD, which overshot its global sales target to more than 4 million units sold last year, opened its first EV plant in Southeast Asia in Thailand in 2024, worth $490 million and which has a production capacity of 150,000 units per year.

(Reporting by Scott Murdoch in Sydney; Editing by Susan Fenton and Bernadette Baum)